Premium Subsidies, Efficiency Loss and Externalities of Agricultural Target Price Insurance---A Theoretical Framework
Liang Zhao, Lei Xu, Ningning Zhang
Available Online November 2016.
- https://doi.org/10.2991/rac-16.2016.91How to use a DOI?
- target price insurance; premium subsidies; externalities; efficiency loss
- In the study, analyzes and define the agricultural target price insurance. Then researches the mechanism of the premium subsidies and direct subsidies and think that the premium subsidies will result in losing efficiency. Find the causes and extent of efficiency loss and concluded By constructing the expected return model of Chinese farmers and insurance institutions: Market risk is key of agriculture and implementation of the target price insurance need to rely on government subsidies. The total subsidy shall be equal to the actual subsidy and efficiency loss. The efficiency loss of subsidies was paid for negative externalities caused by the moral hazard and the greater the loss of efficiency, the lower the actual farmers' subsidy effect.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Liang Zhao AU - Lei Xu AU - Ningning Zhang PY - 2016/11 DA - 2016/11 TI - Premium Subsidies, Efficiency Loss and Externalities of Agricultural Target Price Insurance---A Theoretical Framework BT - 7th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention (RAC-2016) PB - Atlantis Press SP - 564 EP - 568 SN - 1951-6851 UR - https://doi.org/10.2991/rac-16.2016.91 DO - https://doi.org/10.2991/rac-16.2016.91 ID - Zhao2016/11 ER -